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Deadline for 2016 contributions is April 18, 2017
ATLANTA — Tax season is in full swing, and for families across Georgia that means evaluating their financial situations and creating budgets and financial roadmaps for the future. With more than 2.5 million children under the age of 18 in the state (according to the 2016 U.S. Census estimate for Georgia), college savings should be a financial priority for many as tax day approaches.
“With tax day just around the corner, this is the perfect opportunity for Georgia families to look at their financial situation and take control of one of the most important elements of their finances—planning for their children’s college education,” said Mitch Seabaugh, executive director of the Path2College 529 Plan. “Next to retirement planning, this is the single most important financial decision a family will ever make, and with a few simple steps, anyone can take hold of their financial future and invest for college.”
The Path2College 529 Plan was established in 2002, and today nearly 140,000 individuals have accounts totaling more than $2.1 Billion. More than $558 Million has been withdrawn from the plan for qualified educational expenses since 2002 (data through 12/31/16).
“These numbers are outstanding, but we have a long way to go to ensure every child in Georgia has the financial resources they need to continue their education,” said Seabaugh. “We want to encourage families to think about their children’s future, what it will take for them to achieve their goals, and then look at the tax advantages of saving in Georgia’s 529 plan. Hopefully this will inspire them to start saving today.”
Contributions to the Path2College 529 Plan made before the tax deadline each year are eligible for a prior-year state income tax deduction regardless of annual income. Contributions are deductible for Georgia income tax purposes up to $4,000 per year, per beneficiary, for those filing a joint return and up to $2,000 per year, per beneficiary, for those filing a single return.
Any earnings in the Path2College 529 Plan are also federal and Georgia income tax-deferred. Withdrawals for qualified higher education expenses, which may include tuition, fees, books, supplies and equipment required for enrollment, such as computers and related technology such as internet access fees, software or printers, are federal and Georgia income tax-free.
“Contributions made by the tax deduction deadline, this year – Tuesday, April 18 – are eligible for deduction on the preceding year's tax return,” said Seabaugh.
For more information or to start saving in the state of Georgia’s Path2College 529 Plan, please visit www.Path2College529.com.
Consider the investment objectives, risks, charges and expenses before investing in the Path2College 529 Plan. Visit www.path2college529.com for a Plan Disclosure Booklet containing this and other information. Please read it carefully.
Before investing in a 529 plan, you should consider whether the state you or your beneficiary reside in or have taxable income in has a 529 plan that offers favorable state income tax or other benefits that are only available if you invest in that state’s 529 plan.
Taxpayers should seek advice from an independent tax advisor based on their own particular circumstances. Non-qualified withdrawals may be subject to federal and state taxes and the additional 10% federal tax.
Account value for the investment options is not guaranteed and will fluctuate based upon a number of factors, including general market conditions.
TIAA-CREF Tuition Financing, Inc., Program Manager. TIAA-CREF Individual & Institutional Services, LLC, member FINRA, distributor and underwriter for the Path2College 529 Plan.